US home prices rise again in Aug, shows housing recovery is firm

30 October 2012 17:28[Source: ICIS news]

WASHINGTON (ICIS)--?xml:namespace>US home prices rose by 0.9% in major metropolitan areas in August from July, Standard & Poors (S&P) said on Tuesday, continuing what has been a general improvement in values since April and indicating the housing recovery is firm.

In its monthly report, S&P said that August home prices rose in 19 of the 20 major metropolitan areas it tracks.The one exception, Seattle, Washington, saw a slim 0.1% decline in housing prices for the month.

“Home prices continued climbing across the country in August,” said S&P indexes chairman David Blitzer.

“The sustained good news in home prices over the past five months makes us optimistic for continued recovery in the housing market,” he said.

The housing industry is a key downstream consuming sector for chemicals and resins, especially in the construction of new homes.

As home prices begin to recover, it is a sign that home buyers are moving back into the market, creating more demand.

Increasing housing prices also may help stem the flow of foreclosed or abandoned homes on the market.Existing home owners who owe more on their mortgage loan than their houses is worth may be saved from foreclosure as home values continue to rise.

Blitzer noted that the five-month run of rising real-estate prices “confirms other good news about housing”.

He pointed out that “single-family housing starts are 43% ahead of last year’s pace, existing and new home sales are also up, the inventory of homes for sale continues to drop, and consumer mortgage default rates are reaching new lows”.